Credit rating agencies do not only disclose simple ratings but announce watchlists (rating reviews) and outlooks as well. This paper analyzes the economic function underlying the review procedure. Using Moody's rating data between 1982 and 2004, we find that for borrowers of high...

Credit rating agencies emphasize the importance of specific financial ratio thresholds in their rating process. Firms below these thresholds are more likely to receive higher ratings than similar firms that are not. I show that firms near key Debt/EBITDA thresholds are significantly more likely...

"This book focuses on aspects of Complex Systems (including Networks), Mechanism-Design and Behavioral Game Theory, introducing new models and "informal" algorithms that solve social-choice problems (using behavioral Game Theory, Complex Systems Theory and Mechanism Design) and presents new...

"This book focuses on aspects of Complex Systems (including Networks), Mechanism-Design and Behavioral Game Theory, introducing new models and "informal" algorithms that solve social-choice problems (using behavioral Game Theory, Complex Systems Theory and Mechanism Design) and presents new...